Earnings of Note
Company/Estimate
None of note.
Splits
None of note.
Economic Data
Producer Price Index for August estimated to increase .2% versus a .1% increase in July.
PPI Ex Food & Energy for August estimated to rise .1% versus a .1% increase in July.
Trade Balance for July estimated at -$51.5B versus -$55.8B in June.
Recommendations
Goldman Sachs reiterated Underperform on VC and VTS. Goldman reiterated Outperform on HOT and FS. Shares of BEI Technologies(BEIQ) may surge about 45% as Ford Motor installs BEI products in its vehicles to prevent rollovers, Business Week reported. Mobius Management Systems(MOBI) might be a takeover target, Business Week reported.
Late-Night News
Asian indices are mixed on disappointment over Japanese growth and optimism over the rebound in U.S. technology shares. Mike Volpi, a senior vice president at Cisco Systems, has become an outside director of Skype Technologies, a Luxembourg-based provider of Internet telephone services, Business Week reported. Taiwan Semiconductor Manufacturing got its first order from a customer in China for advanced chips made with .13 micron technology, the Commercial Times reported. US Airways Group will probably file for bankruptcy protection Sunday if employee unions don't agree too further benefit cuts, the NY Times reported. Japan's economy grew at a 1.3% annual pace in the second quarter, less than expected, because companies cut inventories and capital spending grew less than predicted. U.S. officials visiting Beijing this weekend will press China to limit textile exports and crack down harder on piracy, Bloomberg reported. Crude oil may fall next week as rising production from OPEC helps replenish global inventories, according to a Bloomberg survey of traders and analysts. China's industrial production growth picked up in August for the first time in six months, suggesting government lending curbs aren't cooling the economy enough, Bloomberg said. Qwest Communications International agreed to pay $250 million to end a SEC investigation into transactions the telephone company used to inflate sales, Bloomberg reported. Novartis AG will concentrate on acquisitions of generic-drug makers instead of combinations with its biggest competitors as the $400 billion industry consolidates, Bloomberg reported.
Late-Night Trading
Asian Indices are -.50% to +.50% on average.
S&P 500 indicated -.19%.
NASDAQ 100 indicated -.29%
BOTTOM LINE: I expect U.S. equities to open modestly lower on weakness in Japan and weekend terrorism fears. However, stocks should rise later in the day on a continuing rebound in technology shares, optimism over future economic growth and short-covering. The Portfolio is 125% net long heading into tomorrow.
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